Occupational retirement provision: What does a foundation board actually do?

In Switzerland, the pension funds take care of occupational retirement provision. Companies that do not have a pension fund of their own can affiliate themselves with a collective institution. Such institutions maintain a separate pension scheme for each company and offer various pension planning solutions tailored to the respective companies' individual needs. The foundation board is the highest body of a collective foundation. It is responsible for the overall management of the pension fund and monitors the management. The members of the foundation board define the strategic goals and the principles, determine the organization of the foundation, and ensure its financial stability.

Petra Arnold Schlüssel (employee representative, Vice Chairwoman of the Foundation Board and member of the Investment Committee) and Stefan Wyss (employer representative and Chairman of the Business Development Committee) are active as members of the Foundation Board of the Vita Collective Foundation. Did you know that, in principle, any insured person who works at least 40 percent for an affiliated employer and has the necessary skills can stand as a candidate for the Foundation Board of the Vita Collective Foundation? According to the Swiss system of part-time public service in the field of occupational retirement provisions, the insured can co-determine important strategic decisions and the range of benefits of their own pension fund.

The Foundation Board of the Vita Collective Foundation will be re-elected in 2025. A good opportunity to ask: What does a foundation board actually do?

Petra Arnold Schlüssel: When I had just started working for my former employer in 2019, my boss said that working on the Foundation Board could be something for me when the Vita Collective Foundation was electing replacements. As a member of the Foundation Board, I can contribute my expertise from my professional experience in institutional asset management and the insurance industry. I attended the information event, decided to run as a candidate and was ultimately elected as an employee representative. As these were by-elections, I joined the committee in the middle of a current term of office.

Stefan Wyss: As an employer, I am interested in ensuring that my employees have the best possible pension fund solution. As a Managing Director, I am also an insured member of the Vita Collective Foundation. For me, optimal performance with the lowest possible costs is the most important – both in terms of interests earned and administration. I want to be at the table for this discussion and help make decisions. For these reasons, I ran as a candidate for the Foundation Board at the time. I was elected as a replacement candidate and took over when a previous member of the Foundation Board retired.

Petra Arnold Schlüssel: I am now not only an employee representative, but also Vice Chairwoman and a member of the Investment Committee. Basically, the aim is to plan, prepare for, and actively participate in the meetings that take place several times a year together with the management. It is also important to ask critical questions, as our decisions have a major impact on the foundation and our insured parties. The members of the Foundation Board also have different levels of expertise, as they come from different sectors – as required by law for an official committee. Communication therefore plays a key role in ensuring that everyone is kept up to date and that their expertise is taken into account. In addition, the work of a member of the Foundation Board includes keeping track of competitors, politics, and the investment markets, as well as attending courses several times a year.

Stefan Wyss: As the foundation's highest body, we are responsible for the strategy, organization, and monitoring of the entire foundation. In addition to attending the meetings of the Foundation Board and the preparing for meetings, I am also active as Chairman of the Business Development Committee and Chairman of the Board of Directors of our management company, SST Vita Dienstleistungs AG.

Petra Arnold Schlüssel: My three roles cannot always be clearly delineated in terms of time. In principle, a Foundation Board mandate without additional duties is roughly a 5 percent workload that is spread irregularly throughout the year. Four regular meetings of the Foundation Board and two additional strategy days are held each year. A preparation time of three to four hours must be expected per session. In addition, there are around three training days per year and a half-day retreat, for which the Foundation Board meets once a year. The amount of work involved can vary depending on the expertise of the member of the Foundation Board. Someone who comes from the asset management or insurance industry can certainly benefit from synergies.

Stefan Wyss: There are generally four full-day meetings of the Foundation Board per year. In addition, there are around three to six hours of meeting preparation, as well as participation in strategy days, representative events, and one to two days of external training. Individual members of the Foundation Board are active in additional committees, which increases their workload accordingly.

Petra Arnold Schlüssel: Time availability is an important prerequisite. The committee consists of eight members and relies on each member being actively involved and having sufficient time to prepare thoroughly for the meetings. Experience has shown that good methodological knowledge of management and/or strategy issues and industry knowledge are also important – preferably regarding occupational retirement provision. Specialist knowledge in the areas of actuarial practice, regulation and law, digitalization, capital markets, risk management, outsourcing contracts, or accounting is also certainly helpful. Every interested person should ask themselves what their knowledge and skills can contribute to the successful management of the foundation.

Stefan Wyss: The work of a member of the Foundation Board is comparable to that of a member of the Board of Directors and entails a great deal of responsibility. A member of the Foundation Board should therefore have the broadest possible basic knowledge of occupational retirement provision and also a particular degree of interest and commitment. It makes sense for candidates to have knowledge of the industry, combined with good leadership and methodological skills, in order to perform well in this demanding role.

Petra Arnold Schlüssel: I recommend attending the information event. Interested parties can find out first-hand what they can expect as a member of the Foundation Board. It is also important to think carefully about whether you have enough time alongside your professional activities and private commitments. I would also talk to your line manager before applying, as the role also requires a certain amount of flexibility from your employer.

Stefan Wyss: I also recommend that all interested parties attend the information event on March 25, 2025 to find out about the requirements in detail. I will also be there and will be happy to answer any questions personally.